Sensex retreats from life-high on global slump

Shares are being dragged down by a slide in the region, as steep falls in US technology and biotechnology stocks are spreading to other sectors and regions.

Traders also cite caution ahead of February factory output data due later in the day, while due next week are consumer inflation data and the start of quarterly earnings reports. Among blue chips, Housing Development Finance Corporation Ltd falls by 1.4 per cent while Reliance Industries is down 0.8 per cent.

Bank shares fall 1.2 per cent after a Reserve Bank of India (RBI) panel recommended a slew of measures, including potentially changing how lending rates are set for the sector, raising worries about overall profitability.